crisil - risk & analytics overview
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CRISIL - Risk & Analytics Overview
September 2017
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CRISIL – An Introduction
Risk and Analytics • 17 of 31 BHCs in
DFAST/CCAR
• Built/validated 1,600+ models in 2016
• Review 20% of outstanding exotic
derivatives annually
Equity Research • 15 of Top 20 Global Investment
Banks
• 3,300 global stocks under coverage, 450
stocks under small and midcap coverage
Credit Risk and
Research • 7 of Top 15 Global Banks
• Track credit quality of 3,400+ credits,
6000+ munis, 80+ sovereigns
Coalition • 15 of Top 20 Global Investment
Banks
• Provide deep analytical research on
market peers, revenue opp., client wallets
and market size
Corporate
Research • 50 Fortune 500 Companies
• Provided intelligence on over 11,000
global firms and insights on 70 sectors
Global
Research and
Analytics
(GR&A)
• MARKET CAPITALIZATION: USD
2.3 BILLION
• STRONG FINANCIAL PROFILE
• ZERO DEBT
• NICHE QUANTITATIVE AND
ANALYTICAL TALENT
• CLIENT FOCUS AND SOLUTION
ORIENTATION
• GLOBAL RESEARCH AND
ANALYTICS
• RATINGS
• RISK SOLUTIONS
• INDIA RESEARCH
• ISO 27001:2013 CERTIFIED
• REGULATED BY SEBI, AN SEC-
EQUIVALENT
CRISIL
Businesses
Strong
Governance and
Compliance
Orientation
Majority
owned by S&P
Global
Strongly
Performance-
Oriented Culture
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Global Footprint and Support by Geography
Buenos Aires, Argentina
Singapore
London, UK
Wroclaw, Poland
Hangzhou, China
India
• Chennai
• Delhi
• Mumbai
• Pune
Hong Kong, China
Eastern EMEA
~200
APAC
~200 Americas
~1,250
Western Europe
~1,150
Research & Analytics Centres
Relationship Offices
Research analysts dedicated
to clients by geography
Our structure
allows us to
serve global
clients “round
the clock”
Paris, France
Over 2,800 highly qualified analysts provide round-the-clock support through
research centres in Argentina, China, India and Poland
US
• Chicago
• New York
• San Francisco
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Some of our Clients in Risk and Analytics
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Risk & Regulatory Analytics – Our Services
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Actuarial Services
• Support across areas of Life, Pension and
P&C in key activities likes
• Pension Admin. and Valuation,
• Asset Liability Modeling
• Enterprise Risk and Stochastic
projections
• Pricing and Product Development
• System Migrations
Model Development
• Development, of models across
regulatory risk, pricing/valuation, actuarial
and finance models
• Pension de-risking and ALM models;
actuarial support in ERM and ORSA
activities
• High-quality model documentation in line
with best in class model risk practices
Model Validation
• Validate regulatory risk models, stress
test models, pricing/valuation models,
actuarial models and others
(accounting/finance etc)
• Challenge model assumptions and
highlight limitations
• Perform back-testing and benchmarking
• Adherence to FRB’s SR 11-7 guidelines
Change Management
• Regulatory Change Management: FRTB,
BCBS 239, UMR and IFRS 9
• Business analysis and testing
• Gap & impact analysis of existing
processes and new processes
• Implementation of large-scale change
programs
• Risk data aggregation
Data Analytics
• Financial crime analytics across banking
lines/products including AML Transaction
monitoring
• Fraud analytics
• Marketing Analytics
RISK &
REGULATORY
ANALYTICS
Activities
• Model Analysis
• Model Implementation and
Integration
• Model Validation/Revalidation
• Model Documentation
• Model Testing
• Performance Monitoring
• Back testing
• Model Recalibration
• Sensitivity Analysis
• Benchmarking
• Building Analytical Libraries and
Tools
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Risk & Analytics Quants – Team Profile
CRISIL GR&A’s Risk and Analytics vertical has a deep and diverse talent pool of quants to support
all our clients’ needs across model risk management
We have experienced quants analysts with varied experience across Risk & Regulatory projects,
Banking analytics, Derivatives pricing and Trading strategies
33% of our quants have 7+ years of experience and ~41% analysts have 3-7yrs years of experience
26% of our quants are PhDs and 34% are pursuing or completed specialized professional courses
(FIA, FSA, IAI, CFA, CQF, MFE, FRM, ERP)
31% of our quants have qualifications from top universities and institutes in the US and UK
80% of our analysts possess a Master’s Degree in a quantitative discipline - Mathematics, Statistics,
Physics, Computer Science, Econometrics or Mathematical Finance
Our analysts posses experience in various valuation tools (FINCAD, NUMERIX), statistical packages
(SAS, R, EVIEWS, MATLAB) & programming languages (C++, Python)
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Talent: Key Differentiators to Attract Superior Talent
Winner of the Exemplary Talent Practices Award for “Talent Attraction”
Global Diversity
Academia
Collaboration
Unmatched Career
Opportunities
• 4 research centres across India,
• 5 strategic international research centres – in USA, UK, Argentina, Poland & China
• In India, CRISIL Doctoral Symposium is organized in collaboration with IIM A, B and C
• In India we conduct on-campus hiring for Actuarial Talent and expose our nurturing
environment and actuarial policy
• In India, CRISIL Young Thought Leader (CYTL) is a competition to promote and recognize
young thought leaders in university campuses
• In Poland, our quant course is a part of the Wroclaw University’s curriculum
• In Argentina and China, we conduct training programmes and workshops in universities
• CRISIL’s multiple business units provide a variety of opportunities for its rich and diverse
talent pool
• 5% of the global headcount is rotated every year across businesses
Strong Brand Image • Company of choice of people looking for analytical careers.
Innovation
• CRISIL Certified Analyst Program (CCAP), a work-cum-study programme aimed at
developing financial analysts
• Pioneers in India in building a large talent pool for derivatives, risk and quant roles through
our indigenous programmes
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Select Institutions that CRISIL GR&A Recruits from…
Strong Campus Recruitment Program
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Delhi School of
Economics
IIM Ahmedabad
IIT Guwahati
ISI Kolkata
Universidad de
Buenos Aires
Madras School of
Economics
IIM Bangalore
IIT Jodhpur
Indira Gandhi
Institute of
Developmental
Research, Mumbai
Universidad de
CEMA
Chennai
Mathematical
Institute
IIM Kolkata
University of
Wroclaw
Indian Institute of
Science,
Bangalore
Universidad de
San Andreas
Institute of
Mathematical
Sciences, Chennai
IIT Bombay
Wroclaw
University of
Technology
Tata Institute of
Fundamental
Research, Mumbai
Universidad de
La Plata
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In-house Training – Sample Modules
Regulatory
Framework
• Introduction to BCBS & Basel Accords
• Calculating RWA and CAR
• Capital Buffers and Liquidity Ratios
• Counterparty Credit Risk Framework
• Basel III Implementation and Challenges
• Introduction to CCAR / stress testing
Modeling
Lifecycle &
Process
• Model development lifecycle
• Different types of models and model risk
• Model validation process (as per SR 11/7 guidelines)
• Role and scope of model validation team
• Understanding model health statistics
• Benchmark & challenger models
• Documentation & validation reports
• Approaches to measure credit risk
• PD, LGD and EAD Models
• Credit scorecard models
• Exposure to products e.g. HELOC, CRE etc
Credit Risk
• Handling low default portfolios
• CCR – capital charges CVA and DVA
• Multi factor models incl. inter asset
correlations
Techniques &
Methodologies
• Probabilistic approaches
• Monte Carlo simulations
• Maximum likelihood, GMM techniques
• Logistic and Fractional Logistic regression models
• Cash flow simulation
• Time Series Modeling
• Machine Learning (ANN, SVM, RF)
• Factor analysis, PCA, Kalman Filters
Other Sample
Modules
Introduction to R Bloomberg
Option Pricing Numerical Methods
SAS – Basic &
Advanced
Interest Rate
Derivatives
Effective Report
Writing
Advanced
Excel/VBA
Stochastic
Calculus
Effective
Communication Product Control
Market Risk
Modeling
Python/C++
Securitized
Products
Data Mining
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Thank You
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About CRISIL
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings
agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.
CRISIL is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data
to the capital and commodity markets worldwide.
About CRISIL Global Research & Analytics
CRISIL Global Research & Analytics (GR&A) is the world's largest and top-ranked provider of high-end research and analytics services.
We are the world's largest provider of equity and credit research services. We are also the foremost provider of end-to-end risk and
analytics services to trading and risk management functions at world's leading financial institutions and corporations. We offer corporate
strategy, competitive intelligence and key account management support to corporations globally. We operate from research centers in
Argentina, China, India and Poland, working with our clients across several time zones and in multiple languages. We are proud to be an
organization that has the vision to proactively invest in its people and get them future-ready. We are committed to delivering cutting-edge
analysis, opinions, and solutions. This underscores our proposition of “Making Markets Function Better”.